Definition
In GTAP, the demand of product for the regional household is the combination of demands from all agents.
In linearized form, we have:
qo(i) = sum(j,SHRFM(i,j) * qf(i,j)) + SHRPM(i)qp(i) + SHRGM(i)qg(i)
Implication: the total demand depends on:
- demand response of each agent
- the share of each agent